Oil prices settle higher on tighter supply optimism ahead OPEC+ decision
Investing.com-- Oil prices settled at near four-month highs Friday, on growing optimism about tighter global supplies as focus shifts to potential announcement by OPEC+ next week.
By 14:30 ET (19.30 GMT), the U.S. crude futures settled 2.2% higher at $79.97 a barrel after briefly topping $80 a barrel intraday for the first time since Nov. 7, 2022. The Brent contract climbed 2.1% to $83.94 a barrel. Both contracts are on a two-month win streak.
OPEC and its allies, or OPEC+, are reportedly expected to make a decision on whether to extend production cuts next week, Reuters reported, citing unnamed sources.
The rolling over of production curbs — of about 2.2 million barrels per day that was agreed in November — into the second quarter has lifted optimism about tighter global crude supply at a time when many are concerned about rising non-OPEC output and China-fueled demand weakness.
The number of oil rigs operating in the U.S. rose by 3 to 506, the highest since September, as domestic refiners slowly step-up activity after weather-related disruptions.
Still, rig counts continue to trend below levels requited «required to maintain current production,» ANZ Research said in a recent note.
Domestic production fell to 13.315 million barrels per day in December, from November's record 13.314 million barrels per day.
(Peter Nurse, Ambar Warrick contributed to this article.)
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